Ronstar
Moderator Emeritus
I went to a retirement seminar and a follow up meeting with an FA with a strong tax background. The message I got was to get all portfolio $ out of our traditional IRAs as soon as possible. And pay the tax on the conversion out of $ in our taxable portfolio.
So I have been running numbers. The new tax law IMO makes Roth conversions more attractive than ever. I can convert roughly $100k per year at around 22% tax which is the same tax rate on my projected year 1 RMD in 2026. Heck I can roll over $35k without leaving the 12% bracket.
Unless I discover reasons to do otherwise, I'd like to minimize the total tax burden through say age 85.
Questions:
1. What pct of conventional IRA do you/will you have converted to Roth by your RMD Year?
2. Will you/ did you continue Roth conversion after your RMD’s start?
3. Do you plan on converting 100% to Roth?
4. How old were you when you started Roth conversions?
5. Do you do Roth conversions every year and once per year? And pay the tax in the quarter that you convert?
6. Is your Roth IRA investment mix the same as in your traditional IRA?
7. To what extent was/is your decision on delaying SS based on your Roth conversion strategy?
8. Do you have reasons to not do Roth conversions?
So I have been running numbers. The new tax law IMO makes Roth conversions more attractive than ever. I can convert roughly $100k per year at around 22% tax which is the same tax rate on my projected year 1 RMD in 2026. Heck I can roll over $35k without leaving the 12% bracket.
Unless I discover reasons to do otherwise, I'd like to minimize the total tax burden through say age 85.
Questions:
1. What pct of conventional IRA do you/will you have converted to Roth by your RMD Year?
2. Will you/ did you continue Roth conversion after your RMD’s start?
3. Do you plan on converting 100% to Roth?
4. How old were you when you started Roth conversions?
5. Do you do Roth conversions every year and once per year? And pay the tax in the quarter that you convert?
6. Is your Roth IRA investment mix the same as in your traditional IRA?
7. To what extent was/is your decision on delaying SS based on your Roth conversion strategy?
8. Do you have reasons to not do Roth conversions?